Occupational identities of management accountants: the role of the IT system

2018 ◽  
Vol 19 (4) ◽  
pp. 465-482 ◽  
Author(s):  
Rafael Heinzelmann
Keyword(s):  
Reference Point ◽  
Management Accounting ◽  
Resource Planning ◽  
Identity Work ◽  
Business Partner ◽  
Content Type ◽  
It Systems ◽  
Management Accountants ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of IT systems on occupational identities of management accountants. The author highlights the pivotal role of the IT system as a central reference point for organisational identity regulation and identity work. Design/methodology/approach The paper is based on a qualitative case study approach. Findings The IT system presents the central means of establishing appropriate behaviour in case organisation (“identity regulation”). At the same time, the IT system acts as a sense-giving device (“identity work”) – the central reference point for management accountants to make sense of their work. In addition, the system creates more dirty and unclean work (Morales and Lambert, 2013), producing dissonance between the business partner role and the organisational reality, which is resolved by relating dirty and unclean work through use of the SAP Enterprise Resource Planning (ERP) system. Research limitations/implications The paper suggests to understand IT systems as an important driver of the management accounting work shaping the occupational identity of management accountants. Practical implications The author aims to sensitise practitioners and organisations to the potential risks of relying too strongly on IT systems – a behaviour which can limit the professional judgement and business insight of management accountants. Originality/value The author contributes to the discussion on how technological disruptions, e.g. ERP implementation, Big Data, business analytics, digitalisation, change management accountants’ identity and management accounting work. The author shows how organisations establish appropriate behaviour and how management accountants make sense upon dissonances between the professional ideals exemplified by business partner role and the organisational realities.

Educating management accountants as business partners

2019 ◽  
Vol 16 (4) ◽  
pp. 517-541
Author(s):  
Morten Jakobsen ◽  
Falconer Mitchell ◽  
Hanne Nørreklit ◽  
Mihaela Trenca
Keyword(s):  
Teaching Practice ◽  
Management Accounting ◽  
Accounting Education ◽  
Business Practices ◽  
Business Partner ◽  
Content Type ◽  
Business Partners ◽  
Pragmatic Constructivism ◽  
Ability To Act ◽  
Management Accountants

Purpose The purpose of this paper is to demonstrate a paradigmatic foundation for educators to prepare students of management accounting for the new demands of the role of trusted business partner in practice. Design/methodology/approach The paper argues for the use of pragmatic constructivism as a basis for development of a paradigmatic foundation for educating advanced students of management accounting. Furthermore, it contains an empirical insight through a case example of how pragmatic constructivism can be used as a pedagogical tool in different management accounting educational situations. Findings The analysis shows how pragmatic constructivism can be used as a less reductionist paradigm than realism to tackle the research-teaching-practice deficiencies found in conventional thinking on accounting education. Pragmatic constructivism is shown to provide important methodological and conceptual elements in developing, understanding and guiding the application of management accounting techniques in dynamic business practices. Placing an emphasis on teaching methodological skills relevant for management accountants is shown to have an important impact on students and their ability to act as business partners. Research limitations/implications The analysis is exploratory in the sense that a new paradigmatic framework for educating students of management accounting to be business partners is outlined and illustrated through its implementation in a specific master’s degree programme. However, this analysis should be viewed as only a first step towards developing pragmatic constructivism as a paradigmatic foundation for teaching management accounting as a basis for a business partner role. Originality/value The proposed use of research on pragmatic constructivism as a basis for management accounting education to support a future business partner role is novel in the literature on management accounting. The value of its application lies in its potential to create successful utilisation of the practices of management accounting.

When Do Opportunity Costs Count? The Impact of Vagueness, Project Completion Stage, and Management Accounting Experience

2010 ◽  
Vol 22 (1) ◽  
pp. 85-108 ◽  
Author(s):  
Lisa Marie Victoravich
Keyword(s):  
Decision Making ◽  
Management Accounting ◽  
Relevant Information ◽  
Opportunity Costs ◽  
Decision Making Process ◽  
Business Partner ◽  
Project Completion ◽  
Management Accountants ◽  
Two Factors ◽  
The Impact

ABSTRACT: Management accountants have recently migrated toward a business partner role, and as a result they often assist management with the decision-making process. Thus, it is imperative that they excel at identification of relevant information such as opportunity costs. This study experimentally tests the prediction that management accounting experience mitigates the tendency to ignore opportunity costs with respect to two factors: opportunity cost vagueness and project completion stage. This study also investigates whether attending to opportunity costs has an impact on project continuance decisions. Results indicate that management accounting experience mitigates the effect of vague opportunity costs and project completion stage. It was also found that attention to opportunity costs acts as mediator and this in turn reduces the tendency to continue an existing project. This suggests that attending to opportunity costs influences decision-making and that it is likely to have an economic consequence.

scholarly journals The role of management accounting practices in the success of Small and Medium-sized enterprises in Durban

2020 ◽  
Author(s):  
◽  
Sicelo Cele
Keyword(s):  
South Africa ◽  
Management Accounting ◽  
High Rate ◽  
Investment Appraisal ◽  
Management Accountants ◽  
Costing System ◽  
Traditional Costing ◽  
And Performance ◽  
The Impact

The sustainability of small and medium-sized enterprises (SMEs) in South Africa is important, mainly because of their contribution to the Gross Domestic Product (GDP) of the country as a whole. Nonetheless, the high rate of SME failure in South Africa is largely attributable to lack of management skills by owners and managers of these SMEs. This study investigated the role of management accounting practices in the success of SMEs in Durban. The objectives were to identify the types of management accounting practices used in SMEs, to examine factors that affect the use of management accounting practices by SMEs, to examine the extent to which management accounting practices are used by SMEs and to examine the impact of management accounting practices in SMEs’ success. A quantitative approach was adopted in a form of self-administered questionnaires which were mailed to respondents. Data were analyzed using descriptive statistics to summarise the opinions of the respondents from the data collected. The findings were analysed using the Statistical Package for Social Sciences (SPSS) version 25. The findings of the study indicate that although the management accounting practices were not often used, the most used costing system was traditional costing as well as process costing. In terms of the decision support and investment appraisal tools, the most used tool was the accounting rate of return followed by the payback method and relevant cost and revenues. Planning and control techniques such as the sales budget and production costing were also used by SMEs in Durban. Factors that affect the use of management accounting practices are the lack of management accounting knowledge, lack of education and skills and the cost to employ management accountants. Management accounting practices were found to have a positive relationship with planning and performance. Challenges faced by SMEs are financial challenges, human resource challenges as well as technological challenges. The study recommended that SMEs’ owners and managers should attend management accounting training, employ management accountants or outsource the management accounting function. Implementing management accounting practices by SMEs may improve their business management in terms of cost controls and decision-making

The impact of organizational citizenship behavior on enterprise resource planning success

2013 ◽  
Vol 31 (1) ◽  
pp. 53-65 ◽  
Author(s):  
Mehdi Narimani ◽  
Elham Tabaeian ◽  
Maral Khanjani ◽  
Farzaneh Soltani
Keyword(s):  
Organizational Citizenship ◽  
Enterprise Resource Planning ◽  
Organizational Citizenship Behavior ◽  
Positive Impact ◽  
Resource Planning ◽  
Total Quality ◽  
Content Type ◽  
Mediating Role ◽  
The Impact

Purpose – Although the research on organizational citizenship behaviors (OCBs) has increased dramatically in diverse fields during the past decade, little is known about the OCBs in the information systems area. The purpose of this study was to explore whether total quality management (TQM) mediates between OCB and enterprise resource planning (ERP) system success. Design/methodology/approach – Data were collected with a questionnaire from subordinates of leaders in steel melting industry in Iran and were used to test the model introduced. Findings – The authors discovered the relationship between OCB and ERP success and the mediating role of TQM in this model. Research limitations/implications – Based on the findings of this study, managers who try for the success of ERP systems can revise their assessment systems through TQM to identify and reward employees who have positive impact in the field of OCB. Originality/value – Limited knowledge is available on the mediating role of TQM between OCB and ERP success in the managing field. The authors prepare a model and test this model in that company.

Economic crisis as a driver of management accounting change

2014 ◽  
Vol 15 (1) ◽  
pp. 123-149 ◽  
Author(s):  
Christoph Endenich
Keyword(s):  
Decision Making ◽  
Empirical Evidence ◽  
Economic Crisis ◽  
Management Accounting ◽  
Cross Sectional ◽  
Content Type ◽  
Management Accountants ◽  
Decision Making Processes ◽  
Statistical Sense

Purpose – The purpose of this paper is to investigate change processes within German and Spanish management accounting which are induced by the recent economic crisis. To illuminate these changes, a particular emphasis is put on budgeting processes and the role of management accountants. Design/methodology/approach – A cross-sectional field study that mainly builds on interviews with senior management accounting executives in nine German and nine Spanish companies was conducted. The German and Spanish companies were matched in terms of industry and size to assure comparability of the two national samples. Findings – The most recent economic crisis represents a crucial driver of management accounting change in the companies comprising my sample. Whereas budgeting is increasingly performed continuously, the empirical evidence suggests that opportunities are continually evolving that might result in a more powerful position of management accountants within corporate decision-making processes and an improved image of management accountants. Research limitations/implications – The findings of this study should not be generalised in a statistical sense. However, the results may be used as the basis for qualitative and quantitative follow-up studies. Practical implications – The paper provides several examples which demonstrate, that management accountants can improve their image and their influence on corporate decision making in times of economic crisis. Originality/value – This paper contributes to the literature by providing both theoretical refinement of and empirical evidence on propositions on the influence of the economic crisis on management accounting.

An empirical investigation of the impact of management accounting on structural capital and business performance

2015 ◽  
Vol 16 (3) ◽  
pp. 566-586 ◽  
Author(s):  
Peter Cleary
Keyword(s):  
Structural Equation ◽  
Business Performance ◽  
Management Accounting ◽  
Information And Communications Technology ◽  
Exploratory Research ◽  
Content Type ◽  
Technology Sector ◽  
Structural Capital ◽  
The Impact

Purpose – The purpose of this paper is to develop and test a series of conceptual models that investigates the impact of management accounting (MA) (systems and information) on firms’ structural capital and business performance. It also replicates previous research in this area which focused on the interplay between the three primary elements of intellectual capital (IC) (i.e. human capital, structural capital and relational capital) and business performance. Design/methodology/approach – A survey instrument was used to collect the data required to conduct the study. All respondents who participated occupied the role of chief financial officer or equivalent and were employed by firms competing within the indigenous Irish information and communications technology sector. Consistent with prior quantitative IC-based research, a form of structural equation modelling called partial least squares was used to test the data collected. Findings – The findings reject the suggestion that MA is most appropriately situated as an element of firms’ structural capital. The findings support a plausible and statistically significant relationship between advanced MA systems and business performance. The findings also generally support previous research on the relationship between the three elements of IC and business performance. Originality/value – Although much has been written about the potential role for MA in the IC area, little empirical evidence has yet emerged. This exploratory research begins to address this deficiency by developing and testing a series of MA-related constructs within the IC research domain.

ERP systems and management accounting

2018 ◽  
Vol 14 (2) ◽  
pp. 120-137 ◽  
Author(s):  
Gary Spraakman ◽  
Winnie O’Grady ◽  
Davood Askarany ◽  
Chris Akroyd
Keyword(s):  
Enterprise Resource Planning ◽  
Management Accounting ◽  
Resource Planning ◽  
Small Samples ◽  
Research Projects ◽  
Erp Systems ◽  
Content Type ◽  
Erp System ◽  
New Information ◽  
The Impact

Purpose This paper aims to show how our understanding of the effects of enterprise resource planning (ERP) systems on management accounting are influenced through “nudging” by researchers in their preamble before interviews begin. Design/methodology/approach There were two groups of comparable respondents. Each group received a different preamble to the same questions. The differences in group responses were analyzed. Findings When the impact of ERP implementation on the physical, transactional and information flows within the firm were nudged, the responses focused on how the chart of accounts had to be expanded to account for the additional data introduced by transaction processing. When the IT and ERP system knowledge and skills were nudged, the responses tended to emphasize analyses or the use of new information through the use of drill down functionality. This research provides new insights and contributions to understanding how nudging affects or directs respondent assessments of the impact of ERP systems on management accounting. Research limitations/implications The research is limited by the relatively small samples and by the fact that these were different research projects. Practical implications Nudging has an obvious impact on research that should not be ignored. Social implications Unintentional nudging should be considered with all research projects. Originality/value This paper makes explicit that nudging occurs in research whether intentional or unintentional.

The changing role of management accounting in the transition from a family business to a non‐family business

2013 ◽  
Vol 9 (2) ◽  
pp. 119-154 ◽  
Author(s):  
Martin R.W. Hiebl ◽  
Birgit Feldbauer‐Durstmüller ◽  
Christine Duller
Keyword(s):  
Family Business ◽  
Online Survey ◽  
Management Accounting ◽  
Control Variable ◽  
Family Businesses ◽  
Family Influence ◽  
Multivariate Statistical ◽  
Content Type ◽  
Management Accountants ◽  
The Impact

PurposeThe purpose of the present paper is to investigate whether the transition from a family business to a non‐family business affects the institutionalisation of management accounting.Design/methodology/approachThis paper is based on an online survey among all large and medium‐sized Austrian firms. Univariate and multivariate statistical analyses were used to test the impact of the level of family influence on aspects of the institutionalisation of management accounting. Firm size is included as the main control variable.FindingsA lower level of influence from the controlling family was found to be correlated with the institutionalisation and intensification of management accounting in medium‐sized firms. For large firms, such a linear relationship could not be drawn. The level of education of management accountants was inversely correlated with the level of family influence in both large and medium‐sized firms.Research limitations/implicationsFurther research into the reasons, underlying drivers and inter‐organisational promoters of management accounting change in family businesses is needed. Furthermore, the organisational impacts of the transition from family businesses to non‐family businesses deserve further investigation.Originality/valueA framework for assessing the organisational effects of the transition from family businesses to non‐family businesses is provided. The empirical results on the impact of the transition on the institutionalisation of management accounting are presented. The level of family influence was found to act as a significant contextual factor for the organisation of management accounting in medium‐sized firms.

scholarly journals Occupational identities of management accountants: Situated identity regulation and work

2013 ◽  
Vol 3 (2) ◽  
pp. 67-86
Author(s):  
Rafael Heinzelmann
Keyword(s):  
Organizational Identity ◽  
New Technologies ◽  
Identity Work ◽  
Positive Role ◽  
Self Identity ◽  
It Systems ◽  
Management Accountants ◽  
Situated Identity

This paper investigates occupational identities of management accountants. It casts light on the identity process consisting of identity regulation, work, and self-identity, wherein organizational identity regulation is drawn to the fore. To theorize this process, the paper draws on Alvesson and Willmott's (2002) and on Giddens (1991). The accounting literature provides evidence that the role of accountants undergoes changes as a result of "new" technologies, competition, globalization and organizational managers' demands (cf. Granlund and Lukka, 1998). This paper takes a different route by focusing on how one organization fosters the controlling of occupational identities. I argue in line with others, i.e. Morales and Lambert (2013), that accounting practices are constitutive for occupational identities. However, this relationship is not straightforward. It is characterized by the tension between the actual work and the professional ideals. In order to safeguard a consistent identity accountants engage in identity work. The results show that the combination of different means of identity regulation creates a strong repressive framework for accounting practices reducing the freedom to act and judge as a professional. It contributes to a better understanding of how accountants' identities are subjected to control while simultaneously challenging the positive role associated with IT systems.

Social capital and national innovation system: a cross-country analysis

2014 ◽  
Vol 21 (4) ◽  
pp. 453-475 ◽  
Author(s):  
Sepehr Ghazinoory ◽  
Ali Bitaab ◽  
Ardeshir Lohrasbi
Keyword(s):  
Social Capital ◽  
National Level ◽  
Innovation System ◽  
Negative Effects ◽  
Content Type ◽  
Research Findings ◽  
Different Dimensions ◽  
The Impact ◽  
Positive Effect

Purpose – In the last two decades, researchers have paid much attention to the role of cultural values on economic and social development. In particular, the crucial role of different aspects of culture on the development of innovation has been stressed in the literature. Consequently, it is vital to understand how social capital, as a core cultural value, affects the innovation process and the innovative performance at the national level. However, to date, the impact of different dimensions of social capital and innovation has not been properly portrayed or explained. Thus, the purpose of this paper is to investigate the influence of four different dimensions of social capital (institutional and interpersonal, associational life and norms) on two of the main functions of national innovation system (NIS) (entrepreneurship and knowledge creation) based on over 50,000 observations in 34 countries. Design/methodology/approach – In this regard, national-level data from the World Values Survey database was employed to quantify social capital. Entrepreneurship is, in turn, assumed to consist of three sub-indexes and 14 indicators based on the Global Entrepreneurship Index. Knowledge creation is also measured through US Patent Office applications. Also, exploratory factor analysis and structural equation modeling approach were used to build the measurement model and investigate the impact that each factor of social capital had on entrepreneurship and knowledge application, respectively. Measurement and structural models were built and their reliability and validity were tested using various fit indices. Research findings suggest the strong positive effect of institutional trust and networking on entrepreneurship. Also, interpersonal trust and networks were shown to have high influence on knowledge development at the national level. Norms appear to have naïve to medium negative effects on both functions. Findings – Research findings suggest the strong positive effect of institutional trust and networking on entrepreneurship. Also, interpersonal trust and networks were shown to have high influence on knowledge development at the national level. Norms appear to have naïve to medium negative effects on both functions. Originality/value – However, to date, the impact of different dimensions of social capital and innovation has not been properly portrayed or explained.

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